Supreme Court Rebuffs Labor Department

Any reader of this article is probably well aware of one of the most commonly referenced federal statutes, namely, The Fair Labor Standards Act (29 U.S. Code §201, et seq.) (the “FLSA”). This statute deals essentially with setting forth minimum wage, the requirement of a customary 40 hour work week, and a time and a half pay provision for work in excess of the 40 hour time period. However, under FLSA Section 213, Congress has set forth a substantial number of exemptions to the maximum hour and overtime provisions, one of which is an “outside salesman.” That term is not specifically defined in the statute and authority is given to the Secretary of Labor to promulgate appropriate regulations. However, FLSA Section 203(k) defines a “sale” to include “any sale, exchange, contract to sell, consignment for sale, shipment for sale, or other disposition.” The Department of Labor had promulgated regulations indicating that an employee is an “outside salesman” when that employee “in some sense, has made sales.” . . . 2012 – Supreme Court Rebuffs Labor Department – July 2012